SMEs venturing abroad told to keep product value high, costs low
Some of the participants attending yesterday’s Local Business Development programme organised by Asia Inc Forum. BT/Leo Kasim
Dr Peter Ting, chief co-creation officer of Strategic Co-Creation Group, speaking at the Local Business Development programme held in Radisson hotel. BT/Leo Kasim
Leo Kasim
BANDAR SERI BEGAWAN
Thursday, October 2, 2014
BUSINESSES which want to venture overseas must keep costs low while retaining their product value, a business strategist said yesterday.
According to Dr Peter Ting, chief co-creation officer of the Kuala Lumpur-based management consultancy firm Strategic Co-Creation Group, business owners need to determine which unnecessary process they can eliminate without sacrificing profit.
“By keeping the value of your product high and costs low, it doesn’t mean that you’re going to sell your product or services cheaply,” Ting said during the Asia Inc Forum’s Local Business Development (LBD) programme.
Apart from high profit margins, he said that businesses can also increase their “imitation barrier” as generated revenues can be used to stay ahead of copycats.
“Anyone who wants to copy you must imitate all that you are doing…but by the time they start to copy, you’re already at another level with your product,” he said.
Ting said that companies which are expanding need to consider its impact on customers, investors, the community and the environment.
Marcelino Ugarte, managing director of Butra HeidelbergCement Sdn Bhd, said it’s important for businesses to work with government agencies in order to move forward.
Ugarte said this strategy has allowed his company to become a supplier to government agencies and to hire more local workers.
Siti Kamaluddin, managing director of Origin Films, stressed the importance of self-belief in business in order to overcome the odds.
“It is really about following through with your passions and persevering on the ideas that you initially started with,” she said.
Pg Azaleen Pg Dato Hj Mustapha, Baiduri Bank’s head of retail and branches, said that access to loans are dependent on the risks associated with the business.
“Companies must be able to articulate their business to banks as clearly as possible so that banks can make an informed decision,” he said.
Md Ashraf Abdullah Kadai, acting head of entrepreneurial development centre at the Ministry of Industry and Primary Resources (MIPR), talked about financing sources from the ministry while Yvonne Kuan, managing partner of financial service company Cedar Management, highlighted the importance of focusing on developing one product.
About 130 representatives from Brunei SME sector attended the event. Also present were senior officials from MIPR and Asia Inc Forum.
The Brunei Times